What Is Limewire Crypto and Is It Worth Investing In

Published: April 9, 2024 | Last Updated: April 9, 2024

Markos Koemtzopoulos

Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.

In this post I will walk you through what Limewire Crypto is and whether I think it is a good investment or not. 

What is Limewire crypto? 

Limewire crypto is an AI tool for generating images, audio, and video in the form of NFTs and a social platform for artists to share their work and earn revenue from them. 

Is Limewire crypto the same as the file-sharing platform from the 2000s?

Limewire was an illegal peer-to-peer file-sharing platform that was popular between 2000 and 2010.  In 2010 it was shut down due to copyright infringements. However, most people who were growing up during that period have a nostalgic feeling for the brand. 

The brand name was acquired by two brothers from Vienna who are serial entrepreneurs after seeing that people still talk about the brand on social media years later. As opposed the stealing from artists the new Limewire wants to empower them through the creator economy.

Who is Limewire for? 

Artists

Limewire isn’t going to be the place where popular artists like Eminem, Taylor Swift, and Madonna sell their new single. But it could be the platform where they release backstage recordings, demos, and other mementos that are meaningful to hardcore fans. Moreover, anyone can share their art in the form of images, audio, and video and either put it up for sale or just simply earn revenue from adverts.

Content Creators

The Limewire AI studio allows you to generate images, audio, and video. They have the second largest Discord community with 2 million people. The reason for this is that Limewire acquired an AI studio called Blue Willow.

Blue Willow is a popular competitor to the AI image generation platform Midjourney which also uses Discord instead of a website to service its users i.e. you generate the image directly within Discord. 

Limewire wants users to transition to its Website where it plans to build out its AI studio features. Then on the same website users can share the output of their work which will attract visitors. This, in turn, will allow Limewire to place ads. 

Business model

There are three main revenue streams for the Limewire ecosystem: Adverts, Subscriptions and marketplace

The Limewire platform offers its users a tiered subscription for its service which you purchase with fiat. Each tier gives a specific number of credits but also rewards you with ad revenue.

The Limewire team is building out the ad platform at the time of writing and it is expected to launch within April 2024.

Limewire marketplace

Currently when you click on an image you get taken to Open Sea where you can purchase the NFT.  But Limewire has its own NFT marketplace. At the time of writing, they are promoting a series of NFTs called Limewire Originals. I imagine over time they will try to compete against Open Sea. A

Already they have partnered with major record labels such as Universal Music Group to sell digital music collectibles.

What blockchain is Limewire using?

Limewire mints NFTs cross chain on Algorand, BNB, and Polygon 

LMWR token

The LMWR coin was originally an erc-20 utility token but today it’s also available on BSC

Token allocation

  • Liquidity provision: 5%
  • Treasury: 15%
  • Token burns: 22.7%
  • Token Sales (Private and public): 23.8%
  • Team: 18%
  • Advisors: 0.5%
  • Community rewards: 15%

Is LMWR a good investment?

To answer this I scored Limewire across the following dimensions. 

  • Team: 100%
  • Product: 88%
  • Tokenomics: 80%
  • Momentum: 85%

Team

1. Are the founders legit with related experience?     ✔️    

Paul Zehetmayr and Julian Zehetmayr are brothers and serial entrepreneurs. They jointly founded and exited the following start-ups: MobFox, apilayer, eversign, and ZeroSSL. The rest of the team is either from those companies or from BitPanda, an Austrian trading platform. On their advisory board, they have the ex-CEO of Algorand and Wu-Tang Clan’ ‘s Manager amongst other names. 

2. Have they built Web 3 projects before?    ✔️    

Yes for example you’ve got the CEO of Algorand as an advisor

3. Did they do an exit?    ✔️    

Yes

4. Can you find legit profiles on LinkedIn?    ✔️    

Yes

5. Did they raise funds?    ✔️    

They raised $10Mn from Kraken Ventures, DeadMaus (the DJ and crypto aficionado), GSR, Crypto.com Capital, Arrington Capital, SwissBorg, CMCC Globa, and Hivemind. According to Cryptorank they also raised $15Mn during their ICO.

Limewire investors
Limewire Investors. Source: lmwr.com/team

6. How long have they been around?    ✔️    

Launched in 2022

7. Public appearances through Interviews/podcasts    ✔️    

Yes

Overall team score: 100%

Product

1. Is it easy to understand what they do?     ✔️    

Yes

2. What is it?    –    

AI studio and content-sharing platform for creators

3. Is there a demand for their product?     ✔️    

On the demand side: people like NFTs. I don’t know what sales look like. On the production side, there are 2mn users on Limewire’s Discord server and over 500 million NFTs on their platform.

4. Is there a use case?    ✔️    

Yes, make it easy to produce content with the help of AI and to convert it to an NFT. 

5. How big is the market?    ✔️    

It’s big people

6. Is it being used?     ✔️    

Yes, according to Similar Web, Limewire.com has more than 1Mn monthly users. 

7. Github activity    –    N/A

8. Has the product launched?    ✔️    

Yes it’s live with video AI studio expected soon and ads are also in the pipeline

9. Does it have a strategic moat?     ✔️    

They have a strong brand that induces nostalgia. They are also the only AI Studio that converts art to NFTs and uses a token

10. Is it focused?    ✔️    

They have a clear plan. However, they are also talking about decentralizing GPU compute which feels like a distraction

11. Is the website easy to understand for non-crypto visitors?    ✔️    

Yeah, the Limewire site is geared toward offering AI studio services with little mention of crypto jargon. LMWR.com does a decent job of explaining what they do as a business and where their token comes into play.

12. Do they have a proof of concept?    ✔️    

Product is live

13. Is the UX good?     ✔️    

Yes the site is easy to use and the user experience is intuitive

14. Is it already being done?     –    

There are many other AI studios for image generation and soon audio and video too. I haven’t seen another that makes NFTs

15. At what stage is the product?     –    

Launched

16. How does it create value?     –    

Anyone can use AI to make content, convert it to an NFT and monetize it.

17. How does the project generate revenue?    –    

Subscriptions and revenue share from ads.

Overall product score: 88%

Tokenomics

1. Why is the coin valuable?    ✔️    

The revenue that Limewire generates through ads will be used to buy back LMWR and distribute it to its creators. LMWR is also used as a payment method

2. Did they do a pre-mine?    –    

Yes there was a private sale

3. Is supply fixed or inflationary?    –    

Supply is deflationary. Started at 1Bn and has dropped to 773 million as tokens have been burned

4. Was it a fair launch    –    

No there was a private sale

5. Circulating/total supply    ❌    

7%

6. Token release schedule    ✔️    

Token unlock is gradual over the next 4 years

7. Are there incentives to reduce or lock supply?    ✔️    

Yes, there are staking incentives in the form of a yield and rewards, exclusive access, and merch depending on how much you stake.

8. How many tokens    ✔️

LMWR only

9. How much upside is left: market cap vs industry size    ✔️    

$82Mn vs billions (e.g. As a reference Midjourney is valued at $10Bn)

10. Is it listed on major exchanges    –    

Yes, it’s on Kraken, Crypto.com, and tier 2. Not on Coinbase or Binance yet.

Overall tokenomics score: 80%

Momentum

1. Is it trending on social media?    ✔️    

I have mixed feelings here. On the one hand, it’s one of the top trending coins on social media. It’s got 2 milion users on Discord and 184K followers on Twitter which it large. On the other hand, they incentivize influencers to promote the brand by rewarding them with LMWR and the most popular tweets are just lists of tokens amongst which LMWR is mentioned. This does not feel like very organic growth. 

Limewire on lunarcrush
Limewire is trending on social media

2. Is the market cap low compared to similar projects?    ✔️    

For such a popular project an $84Mn market cap feels low

3. What is the crypto market like?     ✔️    

In the middle of a bull run

4. What is the sentiment for the sector this crypto focuses on    ✔️    

Investors are into anything that has to do with AI

5. Are they marketing heavily?    –    

Yes

Overall momentum score        85%

Bottom line

Limewire has one of the best teams I have come across in crypto with impressive advisors and a long list of strong backers. The brand is recognizable and the Limewire community is massive. My concerns are 

  1. how much demand there is from buyers: is it just a sea of creators with no one buying the stuff?
  2. How many subscribers do they have? 
  3. How lucrative will advertising be?
  4. The circulating supply is still low.

I will be taking a position and watching this project closely. 

Having said that I am not a financial advisor and this is not investment advice so please make sure you do your own research. 

References

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Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.

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